Windows Phone put a significant drag on Microsoft's fourth-quarter earnings, released Tuesday. Revenue for the troubled platform decreased by $552 million, or 68 percent. Both Lumia and non-Lumia phone revenue declined, which Microsoft attributes to lower volumes and lower-priced devices.
average payment period. Definition. APP. The number of days a company takes to pay off credit purchases. It is calculated as accounts payable / (total annual purchases / 360). Use this term in a sentence. â You should always know how long your average payment period will be so that you can be prepared when the time comes.
If this period will be high, it will create the risk for our liquidity position because some creditor can demand and in long period, we can forget to pay. One month or two month is best time period of our creditors.So, our average payment period should be between 30 to 60 days.We can also use this ratio in cash conversion cycle. Cash conversion cycle ratio is. inventory conversion period + average collection period-average payment period.f this period will be high, it will create the risk for our liquidity position because some creditor can demand and in long period, we can forget to pay. One month or two month is best time period of our creditors.